What is Bodily Injury and Property Damage Coverage?

Having a car insurance policy is mandatory in all states. It may differ on the limits that you carry but still you need to carry it with you at all times and make sure that you do not have any lapse of coverage. Yes, you may have the right coverage that meet the requirements of your state or even have the full coverage but you don’t know a thing about your auto insurance policy. There are many insured that carry auto insurance policy but lacks the knowledge and understanding of what they are paying for.

Liability coverage is what you need to have; this is the most important coverage because the law wants you to have it at all times. Liability coverage is your obligation to the public upon driving a vehicle on public road. It is then composed of two major parts, the bodily injury or BI and the property damage or PD coverage. These two should always go together. Bodily injury is an auto insurance coverage that will cover for the loss of the third party during at-fault accident. The insurance company of the insured will then pay for hospital bills or any medical bills resulting to bodily injury. In the event that the bodily injury coverage is exhausted, then there is a possibility that the insured may then need to cover for the excess of the bill out of his/her pocket. Property damage on the other hand, is any damage to public’s property resulting to the insured driving a car. The best example for this is when the insured accidentally hit a telephone pole. The insurance company of the insured then will cover for any damages resulting to the accident including fixing of the pole and other line problems. The insurance company will then cover the damage up to the chosen limit, if it will be exhausted the insured will then shoulder the expense.

Different states have different minimum limit on their bodily injury and property damage. Should an insured decide that they will change the limit, either lowering it or increasing it; these two coverage will be affected. If an insured will increase the bodily injury then he/she also needs to increase the property damage, same thing in lowering the limits. There are some states that require an insured to send a written request in lowering the liability coverage. You may change your liability coverage, but you need to make sure that you still comply with your state requirement to avoid any trouble with your DMV.